4 ms·

That's a very good way of explaining this. Here in Brazil the previous generations have a golden rule that you must store value in land, not in money. And Braz

by haolez 3y ago

That's a very good way of explaining this. Here in Brazil the previous generations have a golden rule that you must store value in land, not in money. And Brazil has had tons of inflation and weak currencies in the last decades (with all the poverty and stagnation that it brings).

gumby 3y ago
Land can expire. IIRC back in the late 60s and 70s Singapore had, and may still have, a law requiring purchased land to be developed within 7 years else the government would auction it off. The same effect is why many economists believe that a bit of inflation is important (this argument is different from the widely held central bank theory that an inflation target of ~2% is better than 0)
- temporarara 3y ago
  If you buy forest or agricultural land you are pretty safe. The worst thing that can happen in civilized places is that a big entity forcefully buys it away from you for "reasons" and you don't get as much profit as you would like, but nonetheless then you can just buy more land somewhere else. Owning developed land is just a liability in many places since you've got to pay taxes and all kind of annual fees. It's business at that point and not just owning land (your business instincts don't have to be nearly as good when dealing with forest and agricultural land).
- alittleotbut 3y ago
  Expire !? For example, let's think about a solid basic land reform, and every owner now has to pay 5% of the immobile-value on it, as an annually tax. And after twenty years i don't have paid the debt for an apartment or house, two-times? But, sure so americans try to sell us houses builded from; chipboard, insulating wool, plasterboard and roofing cardboard? i am questioning this... in terms of: "money was to last longer than the expiring and perishable things" and "The real estate bubble created by low interest rates" Cos for me it seem that it ignored grief and "people" for -to be objective something the OP named "interest", i won't sound offending but it seem to be a mistake (both..all three...) regards... edited: sry "alittlebut" i mistaken you for the op p-:
- haolez 3y ago
  They probably preach that because they never saw land expire in decades, but they've seen money expire a few times.
- bombcar 3y ago
  A 1% land tax expires the land in 100 years.
  - CapitalistCartr 3y ago
    Because of compound interest, the total tax will equal original land value in about 70 years, assuming simple interest. But the utility of land is worth far more than 1%.
    - thriftwy 3y ago
      What is the utility of a piece of a forest somewhere in Brazil? Assuming you do not deforest it.
      - the_third_wave 3y ago
        You do not need to deforest a forest to harvest trees. Assuming an annual growth of X m³ha-¹ you'll be able to harvest X*area by taking only mature trees. If you start out from a clear cut or a forested area grown from a recent clear cut you'll need to stagger the first few harvests (which will produce less wood that projected) to create more diversified age strata but once you have this system going you'll be able to keep on harvesting without breaking the forest cover. The effect of such a management technique is not too different from the way trees naturally age and die, especially not when tree crowns and branches (which used to be of little to no commercial value although this has changed with the increased demand for biomass for heating purposes) are left in the forest to make sure the soil is not depleted.
  - refurb 3y ago
    Most of Singapore land is on a 99-year lease. There is some freehold and 999-year leases left over from the British, but no new land will be created with that type of ownership. When you buy land with a 99-year lease in Singapore, it will be turned over to the government at the expiration of the term, with $0 in compensation. There have been a lucky few who get en bloc development where the land is sold before expiration and a new 99-year is provided - so current residents get bought out at values higher than otherwise. A few 60 year leases expired recently. The government assisted in finding new homes, but it was pretty much "get your belonging and leave". https://www.channelnewsasia.com/singapore/lorong-3-geylang-expiring-leases-owners-permanent-housing-sla-452881 https://www.channelnewsasia.com/singapore/lorong-3-geylang-e...

by haolez 3y ago

gumby 3y ago

Land can expire. IIRC back in the late 60s and 70s Singapore had, and may still have, a law requiring purchased land to be developed within 7 years else the government would auction it off. The same effect is why many economists believe that a bit of inflation is important (this argument is different from the widely held central bank theory that an inflation target of ~2% is better than 0)

temporarara 3y ago
If you buy forest or agricultural land you are pretty safe. The worst thing that can happen in civilized places is that a big entity forcefully buys it away from you for "reasons" and you don't get as much profit as you would like, but nonetheless then you can just buy more land somewhere else. Owning developed land is just a liability in many places since you've got to pay taxes and all kind of annual fees. It's business at that point and not just owning land (your business instincts don't have to be nearly as good when dealing with forest and agricultural land).
alittleotbut 3y ago
Expire !? For example, let's think about a solid basic land reform, and every owner now has to pay 5% of the immobile-value on it, as an annually tax. And after twenty years i don't have paid the debt for an apartment or house, two-times? But, sure so americans try to sell us houses builded from; chipboard, insulating wool, plasterboard and roofing cardboard? i am questioning this... in terms of: "money was to last longer than the expiring and perishable things" and "The real estate bubble created by low interest rates" Cos for me it seem that it ignored grief and "people" for -to be objective something the OP named "interest", i won't sound offending but it seem to be a mistake (both..all three...) regards... edited: sry "alittlebut" i mistaken you for the op p-:
haolez 3y ago
They probably preach that because they never saw land expire in decades, but they've seen money expire a few times.
bombcar 3y ago
A 1% land tax expires the land in 100 years.
- CapitalistCartr 3y ago
  Because of compound interest, the total tax will equal original land value in about 70 years, assuming simple interest. But the utility of land is worth far more than 1%.
  - thriftwy 3y ago
    What is the utility of a piece of a forest somewhere in Brazil? Assuming you do not deforest it.
    - the_third_wave 3y ago
      You do not need to deforest a forest to harvest trees. Assuming an annual growth of X m³ha-¹ you'll be able to harvest X*area by taking only mature trees. If you start out from a clear cut or a forested area grown from a recent clear cut you'll need to stagger the first few harvests (which will produce less wood that projected) to create more diversified age strata but once you have this system going you'll be able to keep on harvesting without breaking the forest cover. The effect of such a management technique is not too different from the way trees naturally age and die, especially not when tree crowns and branches (which used to be of little to no commercial value although this has changed with the increased demand for biomass for heating purposes) are left in the forest to make sure the soil is not depleted.
- refurb 3y ago
  Most of Singapore land is on a 99-year lease. There is some freehold and 999-year leases left over from the British, but no new land will be created with that type of ownership. When you buy land with a 99-year lease in Singapore, it will be turned over to the government at the expiration of the term, with $0 in compensation. There have been a lucky few who get en bloc development where the land is sold before expiration and a new 99-year is provided - so current residents get bought out at values higher than otherwise. A few 60 year leases expired recently. The government assisted in finding new homes, but it was pretty much "get your belonging and leave". https://www.channelnewsasia.com/singapore/lorong-3-geylang-expiring-leases-owners-permanent-housing-sla-452881 https://www.channelnewsasia.com/singapore/lorong-3-geylang-e...